Net Devices Inc $$\text { ASEETE (\$in thausands) }$$

question 62

Multiple Choice

Net Devices Inc.
The following balance sheets and income statements are for Net Devices Inc., a manufacturer of small electronic devices, including calculators, personal digital assistants and mp3 players.For purposes of these questions assume that the company has an effective tax rate of 35%.
BALANCE SHEETS
$$\text { ASEETE (\$in thausands) }$$
$\begin{array}{l}\begin{array}{lll}\text {Fiscal year end}\\\text {Cash}\\\text {Marketable securities}\\\text {Receivables}\\\text {Inventories}\\\text {Other current assets}\\\text {Total current assets}\\\\\text {Property, plant \& equipment}\\\\\text {Intangibles}\\\text {Deposits \& other assets}\\\text {Total assets}\\\end{array}\begin{array}{lll}2011 & 2010 &2009\\\$ 875,650 & \$ 571,250 &154,230\\6,560 & 0 &0\\771,580 & 775,250&902,000 \\1,320,150 & 1,254,600 &1,418,500 \\\underline{249,000} &\underline{ 231,200}&\underline{229,900 }\\3,222,940 & 2,832,300 &2,704,630\\\\1,118,750 & 1,100,300 & 1,122,400\\\\263,050 & 241,000&215,600 \\\underline{184,500} &\underline{ 168,250}&\underline{168,900}\\\underline{\$ 4789240}&\underline{\$ 4341850}& \underline{\$ 4211530}\end{array}\end{array}$

$\begin{array}{l}\begin{array}{lll}\text { LIABILITIES (\$ in thousands) }\\\\\text {Fiscal year end}\\\text {Accounts payable}\\\text {Current long term debt}\\\text {Accrued expenses}\\\text {Income taxes payable}\\\text {Other current liabilities}\\\text {Total current liabilities}\\\\\text {Long term debt}\\\text {Other long term liabilities}\\\text {Total liabilities}\\\\\text {Preferred stock}\\\text {Common stock net}\\\text {Additional Paid-in Capital}\\\text {Retained earnings}\\\text {Treasury stock}\\\text {Shareholders' equity}\\\\\text {Total Liab, \& Equity}\\\end{array}\begin{array}{lll}\\ \\2011 & 2010 &2009\\\$ 1,178,540 & \$ 1,061,100 & \$ 1,138,250 \\18,100 & 316,500 & 150,900 \\664,100 & 615,900 & 585,400 \\138,900 & 108,400 & 38,200 \\\underline{0 }& \underline{0 }&\underline{ 0} \\1,999,640 & 2,101,900 & 1,912,750 \\\\478,250 & 378,400 & 599,630 \\\underline{13,350} & \underline{0 }&\underline{0}\\2,491,240 & 2,480,300 & 2,512,380\\\\850,000 & 850,000 & 550,000 \\4,000 & 3,950 & 3,800 \\869,000 & 758,000 & 689,500 \\1,430,500 & 1,055,000 & 1,245,050 \\\underline{(855,500) }& \underline{(805,400) } & \underline{(789,200) }\\\underline{2,298,000} & \underline{1,861,550 }& \underline{1,699,150}\\\\\underline{\underline{\$ 4,789,240} }&\underline{\underline{\$ 4,341,850 }}& \$ \underline{\underline{4,211,530}}\\\end{array}\end{array}$
$\begin{array}{lcc}\text { INCOME STATEMENTS (f in thousands) }\\\\\text { Fiscal year end } & \mathbf{2 0 1 1} & \mathbf{2 0 1 0} \\\text { Net sales } & \$ 11,455,500 & \$ 11,082,100 \\\text { Cost of Goods Sold } & \underline{(8,026,450) }& \underline{(7,940,065) }\\\text { Gross profit }&3,429,050&3,142,035\\\\\text {Selling, general \& admin. Exp. }&\underline{(1,836,400) }&\underline{(1,789,200) }\\\text {Income before deprec. \& amort.}&1,592,650&1,352,835 \\\\\text {Depreciation \& amortization }&(785,250) & (757,250) \\\text {Interest expense}&\underline{(46,195) } & \underline{(43,340) }\\\\\text { Income before tax } &761,205&552,245\\\text { Provision for income taxes } &(157,725) &(112,290) \\\text { Minority interest }&--&--\\\\\text { Net income }&\underline{\underline{\$ 603.480}}&\underline{\underline{\$ 439.955}} \\\\\text { Outstanding shares (in thousands) } & 308,515 & 303,095 \\\text { Preferred Dividends (in thousands) } & \$ 85,000 & \$ 85,000\end{array}$
-Refer to the information for Net Devices Inc.What is Net Devices' return on common shareholders' equity for 2011?

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Definitions:

Standard Deviation

An indicator showing how much a group of values diverges or spreads out.

Finite Population Correction Factor

A factor applied to the calculation of standard errors when sampling from a finite population to adjust for the sample size relative to the population size.

Sample Mean

The average value obtained from a sample, a subset of a larger population.

Population Mean

The average of a set of values in the entire population.